How are expenses managed in Mozambique?

At Horizons, ensuring a smooth and transparent expense reimbursement process is essential for our team members.

In Mozambique, the taxation of expenses is determined based on their connection to business activities. It is crucial to distinguish between reimbursable expenses and expenses that are considered taxable benefits:

• Reimbursable Expenses: These are not taxed, as they are directly related to business activities and necessary for the performance of an employee's duties.
• Taxable Benefits: Expenses that confer a personal benefit to an employee, such as personal travel expenses or non-business-related meals, may be taxable under Mozambican law.

To avoid complications, accurate records of all expenses must be kept, including the original receipts/invoices, to clearly demonstrate their business-related nature in case of audits by tax authorities.

Proper documentation is key to managing expenses effectively. In Mozambique, receipts and invoices must clearly contain the following information to be acceptable for both accounting and tax purposes:

• Date of Transaction: The exact date when the expense was incurred.
• Detailed Description: A clear description of the goods or services purchased. This description must be detailed enough to verify that the expense is business-related.
• Name of the Employer: Horizons needs to be listed on the invoices/receipts: Horizonte Recusos Humanos 
• Amount and Currency: The total amount spent and the currency used.
• Supplier Details: Information about the supplier, including their name and contact details.
• Tax Information: If applicable, the VAT amount and the supplier's VAT registration number should be included. This information is crucial for businesses to claim VAT credits.

This structure ensures that all reimbursements are handled efficiently and comply with Mozambican tax laws.

Good to know

To review how to submit an expense and/or an expense report on the Horizons platform, take a look at this separate article:
How to submit expenses? : Horizons Help Center (joinhorizons.com)

To review how to appove an expense and/or an expense report on the Horizons platoform, take a look here:
How do I approve an expenses report? : Horizons Help Center (joinhorizons.com)